However, the Japanese pharma industry remains one of the largest, after the U.S. and China, with a share of approximately ten percent of the world market. While the market in Japan is subjected to a transformation, it offers a variety of opportunities and potential for growth. The aging society and growing life expectancy have led to a high demand for medical treatment and will be a key driver for future developments. Additionally, the Japanese government has been working to reduce long approval processes for new products faced by pharma companies, which will also have the positive effect of attracting foreign companies. But not only international companies seeking to invest in the Japanese market, also growing pharmaceutical exports from Japan will help strengthening the pharma industry.
Along with the changing industry landscape and the flourishing market for generic drugs, the projected transformation of the Japanese pharma industry will be driven by the increased use of biosimilars that are expected to be the fastest growing sector in the future with a variety of products currently under development. While biopharmaceuticals account for about one third in the world market, products make up only around ten percent in the Japanese biopharmaceutical market, indicating potential for growth.